Bragg Gaming Group has released its Q3 report, showcasing steady growth and record-breaking revenue. However, the company saw its share price dip after denying a potential sale of its business.
In the third quarter, Bragg’s revenue climbed 16% year-on-year to EUR 26.2 million ($27.7 million). Gross profits also saw a substantial increase of 18.1% year-on-year to EUR 14 million ($14.8 million), with margins improving from 52.5% to 53.5%.
Adjusted EBITDA rose by 7.1% to EUR 4.1 million ($4.3 million), with an AEBITDA margin of 15.6%. By the end of the quarter, the company held EUR 11.6 million ($12.3 million) in cash and cash equivalents.
Additionally, Bragg Gaming updated its guidance for FY 2025, now expecting revenue between EUR 102-109 million ($107.8-115.2 million) and adjusted EBITDA ranging from EUR 15.2-18.5 million ($16-19.6 million). The company noted that it is currently tracking towards the lower end of these projections.
In March 2024, Bragg Gaming began a strategic review of its business, exploring potential mergers and acquisitions (M&A) opportunities. This review, conducted by a Special Committee in partnership with Oakvale Capital and Blake, Cassels & Graydon, aimed to explore various strategic alternatives.
After engaging in discussions with multiple potential counterparties and receiving several non-binding proposals, the Special Committee and the board of directors concluded that “none of the proposals received reflect the company’s intrinsic value or current and projected financial performance.”
As a result, the review was concluded, and the Special Committee disbanded. Bragg indicated that it remains open to opportunities that could maximize shareholder value.
Despite believing this was the right decision, the announcement led to a 30% drop in Bragg’s share price, falling from CAD 6.10 to CAD 4.26.
Nevertheless, Bragg Gaming remains optimistic about its future. The company plans to leverage its momentum in the US to expand its business and increase shareholder value. According to its report, Bragg anticipates a robust sales pipeline in 2025 and is positioned to become a leading platform in Brazil, where it plans to launch its Player Account Management (PAM) system.
